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Compute sales in kilograms that would be required to produce

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Reference no: EM132816723

Smith-Pelley Inc produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows:

The company produced and sold 120,000 kilograms of product during the month. There was no beginning or ending inventories.

Required:

Problem a) Given the present situation, compute:

1. The break-even sales in kilograms.
2. The break-even sales in dollars.
3. The sales in kilograms that would be required to produce operating income of $90,000.
4. The margin of safety in dollars.

Reference no: EM132816723

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